HOUSE BILL NO. 248
INTRODUCED BY D. HARRINGTON, G. BECK, S. GALLUS, K. GILLAN, J. LYNCH, B. MCCARTHY, B. PAVLOVICH, J. QUILICI, D. SHEA, B. TASH, J. TROPILA
A BILL FOR AN ACT ENTITLED: "AN ACT CLARIFYING THAT THE PROVISION OF WATER AND SEWER
UTILITY SERVICES BY A MUNICIPALITY OR A DISTRICT TO INDUSTRIAL AND COMMERCIAL USERS DOES
NOT CONSTITUTE A BENEFICIAL USE IN THE UTILITY SERVICE BY THE INDUSTRIAL OR COMMERCIAL
USER; AMENDING SECTION 15-24-1203, MCA; AND PROVIDING AN IMMEDIATE A DELAYED EFFECTIVE
DATE AND A RETROACTIVE APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-24-1203, MCA, is amended to read:
"15-24-1203. Privilege tax on industrial, trade, or other business use of tax-exempt property -- exceptions. (1)
There is imposed and must be collected a tax upon the possession or other beneficial use for industrial, trade, or other
business purposes enjoyed by any a private individual, association, or corporation of any property, real or personal, that for
any reason is exempt from taxation. The tax is imposed upon the possession or other beneficial use of an electric
transmission line and associated facilities, except that lines and facilities of a design capacity of less than 500 kilovolts are
not subject to the tax.
(2) The tax may not be imposed upon:
(a) the possession or other beneficial use of railroad right-of-way or track owned by the United States or acquired by the state pursuant to Title 60, chapter 11, part 1, as long as the state or the United States retains ownership and the right-of-way or track is used exclusively for rail transportation;
(b) the beneficial use by a person of property held by a port authority, created under Title 7, chapter 14, part 11, or by a port authority owned by the United States or an agency of the United States unless the port authority provides for the exclusive use of the property by the person;
(c) the possession or other beneficial use of public lands occupied under the terms of recreational, mineral, timber, or grazing leases or permits issued by the United States or the state of Montana or upon any easement unless the lease, permit, or easement entitles the lessee or permittee to exclusive possession of the premises to which the lease, permit, or easement relates; or
(d) the possession or other beneficial use of buildings owned by public entities and located upon public airports. However, privately owned buildings located on public airport property are subject to taxation.
(3) The use of public municipal or district utilities, such as water supply and sewer services, by industrial and
commercial users does not constitute a beneficial use of the water supply or sewer systems by the industrial and commercial
users. The utility service contract between the municipality or district and the industrial or commercial user may be either
implied or written.
(3) THE NONEXCLUSIVE USE OF A PUBLIC MUNICIPAL OR DISTRICT WATER SUPPLY SYSTEM OR SANITARY SEWER SYSTEM BY AN INDUSTRIAL OR COMMERCIAL USER DOES NOT CONSTITUTE A BENEFICIAL USE OF THE WATER SUPPLY SYSTEM OR SANITARY SEWER SYSTEM BY THE INDUSTRIAL OR COMMERCIAL USER WITHIN THE MEANING OF THIS SECTION, WHETHER THE USE IS BY WRITTEN CONTRACT OR PURSUANT TO MUNICIPAL OR DISTRICT ORDINANCES AND REGULATIONS."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval DECEMBER 31, 2003.
NEW SECTION. Section 3. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109,
to tax years beginning after December 31, 1997.
- END -
Latest Version of HB 248 (HB0248.03)
Processed for the Web on April 13, 1999 (4:38PM)
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